Estate Planning & Real Estate

Does Real Estate Go Through Probate in Pennsylvania?

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Real estate in Pennsylvania goes through probate unless the ownership structure is set up to avoid it. If a property is held in one name alone or as a tenant in common, an estate must be opened before title can be transferred.

Most people assume a will controls what happens to a house. It does not. The outcome depends entirely on how the deed is titled at the time of death.

Lebovitz & Lebovitz, P.A. · Serving Pittsburgh and Western Pennsylvania since 1933. Based in Swissvale near the Parkway East (Swissvale–Edgewood exit).

When Real Estate Goes Through Probate in Pennsylvania

Real estate goes through probate when title is held in the deceased owner’s name alone. An executor must be appointed, an estate opened through the Register of Wills, and a fiduciary deed obtained before title can be transferred to an heir or sold to a third party. None of that can happen informally. The institution that holds the mortgage, the title company at a future closing, and the county recorder all require documentation of a properly administered estate before they will recognize a transfer. If the property carries a mortgage, the obligation does not disappear at death. See what happens to a mortgage when the owner dies.

Property held as tenancy in common also goes through probate. When one co-owner dies, their fractional share passes through their estate, not automatically to the surviving co-owners. It passes wherever the will directs, or to intestate heirs if there is no will. The surviving co-owners continue to hold their own shares. The deceased owner’s share requires the same probate process as any other estate asset.

The property must be appraised at its date-of-death fair market value for the Pennsylvania inheritance tax return. The executor cannot transfer clear title until the estate is opened and inheritance tax obligations are addressed.

When Real Estate Avoids Probate in Pennsylvania

Joint tenancy with right of survivorship. When two or more owners hold property as joint tenants with right of survivorship, the surviving owner takes full ownership automatically at death by operation of law. No probate is required. The deed must expressly state survivorship language to create this structure. Pennsylvania does not presume joint tenancy from co-ownership alone. Pennsylvania sometimes refers to these as survivorship deeds.

Tenancy by the entirety. Available only to married couples, tenancy by the entirety carries the same automatic survivorship: the surviving spouse takes full ownership at the first death without probate. Neither spouse can sever the arrangement unilaterally or encumber the property without the other’s consent. It also provides a degree of creditor protection against individual judgments during life.

Life estate deed. A life estate deed names a remainder beneficiary who automatically receives full ownership at the life tenant’s death. Because the remainder interest is created when the deed is recorded, no probate is required to complete the transfer. The life tenant retains full use and control during their lifetime but cannot sell or mortgage the property without the remainder beneficiary’s consent.

Revocable trust. Property transferred into a revocable trust during life passes according to the trust terms at death, without probate. The grantor retains full control and can amend or revoke the trust at any time. Unlike joint tenancy or a life estate, the trust does not create a present ownership interest in any beneficiary during the grantor’s lifetime.

Pennsylvania does not allow transfer-on-death deeds for real estate. A beneficiary designation placed directly on a deed, the way TOD and POD designations work for financial accounts, is not legally recognized for real property in this state. Probate avoidance for Pennsylvania real estate requires a structural change in ownership, not a designation made after the fact.

If none of these structures are in place at the time of death, probate is required. There is no workaround after the fact.

How Deed Structure Controls the Outcome

The deed on file with the county recorder at the time of death is the controlling document.

A deed recorded years ago at closing governs the outcome at death. A parent who added a child as joint tenant decades ago may have already resolved the probate question without knowing it. A parent who held the property alone left an estate administration problem the family now has to navigate. The structure that exists at death is the structure that applies. For a full explanation of how each ownership form works and what it means at death, see our page on types of deeds in Pennsylvania.

What Happens to Real Estate That Goes Through Probate

When real estate is part of a Pennsylvania estate, the executor has authority to manage, maintain, and sell it during administration. Before the property can be transferred to an heir or sold, the executor must be formally appointed through the register of wills and the estate properly opened. The executor cannot transfer clear title until the estate is opened and inheritance tax obligations are addressed.

The property is appraised at its date-of-death fair market value for the REV-1500 inheritance tax return. Inheritance tax must be paid, or a payment arrangement established with the Pennsylvania Department of Revenue, before a clean title transfer can occur. An unpaid inheritance tax obligation creates a lien that follows the property and must be resolved at any future closing. Title companies and mortgage lenders will not close on a property with an unresolved inheritance tax lien. For a complete explanation of the administration process, see our page on estate administration and probate in Pennsylvania.

Pennsylvania Inheritance Tax on Real Estate

Pennsylvania inheritance tax applies to real estate transfers at death regardless of whether the property goes through probate. A survivorship transfer to a child is taxed at 4.5 percent of the date-of-death value. A transfer to a sibling is taxed at 12 percent. A transfer to an unrelated party is taxed at 15 percent. Transfers to a surviving spouse are exempt. The tax is due nine months after death, with a 5 percent discount available if paid within three months. For rates, filing requirements, and exemptions, see our page on Pennsylvania inheritance tax.

Even when real estate avoids probate through a survivorship structure or life estate, the transfer must still be reported on the REV-1500 and the tax must be paid. The property passes outside the estate, but the tax obligation follows the transfer. If the beneficiary sells the property without resolving the inheritance tax, the lien remains. For how these obligations interact with beneficiary designations and survivorship transfers on financial accounts, see our page on TOD, POD, and joint accounts in Pennsylvania.

Stephen H. Lebovitz is a real estate and estate planning attorney at Lebovitz & Lebovitz, P.A. in Swissvale, Pennsylvania, with more than three decades of experience handling property transfers, estate administration, and inheritance tax matters in Allegheny County.

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